- Through Victor Jouma | Business Daily Africa
KCB Group spent 6.3 billion shillings to acquire Banque Populaire du Rwanda Plc (BPR) from London-listed Atlas Mara Limited and other investors.
The country’s second-largest bank by assets completed the deal on August 25, paying Atlas Mara $33 million (3.6 billion shillings) to acquire its 62.06% stake in the lender.
Atlas Mara will receive an additional $2.8 million (311 million shillings) which has been deferred. Former BPR minority investors, who held a combined 37.94% stake, secured $21.9 million (2.4 billion shillings).
Details of the transaction price have been disclosed by Atlas Mara, which was the first to sign an agreement with KCB before the former minority shareholders joined to sell their shares on the same terms.
KCB has also signed an agreement with Atlas Mara to acquire its Dar es Salaam-based subsidiary, African Banking Corporation Tanzania.
“The transaction, which has been approved by the Bank of Tanzania, is now subject to the satisfaction of customary conditions precedent. The sale of ABC Tanzania is expected to close before the end of the year,” Atlas Mara said.
The cost of the Tanzanian transaction was initially estimated at 806 million shillings.
Atlas Mara is selling its African banks to KCB and other lenders to raise funds to pay its creditors, some of whom had launched liquidation proceedings against the multinational dreamed up by former Barclays Plc CEO Bob Diamond.
KCB says the acquisitions reflect its strategy of expanding its operations in the regional market. Major banks led by Equity, KCB, I&M and DTB have deepened and expanded their presence in the region in search of growth and diversification.
Adoption of financial services in neighboring countries is lower than in Kenya, signaling future growth opportunities.
The ability to offer seamless services to customers in multiple markets is also seen as an advantage in attracting and retaining multinationals.
- Business Daily Africa